Wholesale power markets may be the linchpin of India-US cooperation on climate change and renewable energy integration

In February 2021, Prime Minister Modi’s first communique with American President Joe Biden has unsurprisingly catapulted climate change cooperation to the forefront of India-U.S. relations. The United States is looking to lead from the front on the issue, and hoping to regain credibility through partnerships with emerging economies like India to achieve the ambitious goals laid out in the Paris Climate Agreement. At the same time, India is looking for both financial resources and market design knowledge to decarbonize and sustainably develop its economy. These newly aligned incentives have created space for rich bilateral cooperation and for a free exchange of economic resources, ideas and information between the two countries.